Timpanogos Inc. is an accrual-method calendar-year corporation. For 2014, it reported financial statement income after taxes of $1,149,000. Timpanogos provided the following information relating to its 2014 activities:

Timpanogos did not qualify for the domestic production activities deduction.

Required:

a. Reconcile book income to taxable income for Timpanogos Inc. Be sure to start with book income and identify all of the adjustments necessary to arrive at taxable income.
b. Identify each book-tax difference as either permanent or temporary.
c. Complete Schedule M-1 for Timpanogos.
d. Compute Timpanogos, Inc.’s regular tax liability for 2014.
e. Determine Timpanogos’s alternative minimum tax, if any.